1. Chapter 5 Product Specifications

2. Learning Objectives How to translate subjective customer needs into precise target specs? How could the team resolve the inevitable trade-offs among product characteristics such as cost and weight?

3. What Are Specifications? Product specs spell out in precise, measurable detail what the product has to do. Product specifications do not tell the team how to address the customer needs. For example: customer need: “the suspension is easy to install” corresponding specification might be: “ the average time to assemble the fork to the frame is less than 75 seconds.”

4. Customer Needs for the Suspension Fork

5. Similar terms: Specifications Product requirements Engineering characteristics Technical specifications: to refer to key design variables of the product such as the oil viscosity or spring constant of the suspension system. A specification (singular) consists of a metric and a value.

6. What Are Specifications? For example, “average time to assemble” is a metric, while “less than 75 seconds” is the value of this metric. The product specifications (plural) are simply the set of the individual specifications.

7. When Are Specifications Established? Immediately after identifying the customer needs, the team sets target specifications. Target specifications represent the hopes and aspirations of the team, but they are established before the team knows what constraints the product technology will place on what can be achieved.

8. When Are Specifications Established? The team’s efforts may fail to meet some of these specifications and may exceed others, depending on the product concept the team eventually select. For this reason, the target specifications must be refined after a product concept has been selected.

9. When Are Specifications Established? Team revisits specs. while assessing actual technological constraints & expected production costs. To set the final specifications, the team makes trade-offs among different desirable characteristics of the product.

10. The Concept Development Process

11. Four Steps of the Process of Establishing The Target Specifications 1. Prepare the list of metrics, using the needs-metrics matrix, if necessary. 2. Collect the competitive benchmarking information. 3. Set ideal and marginally acceptable target values for each metric. 4. Reflect on the results and the process.

12. Step 1. Prepare the List of Metrics Most useful metrics are those that reflect as directly as possible the degree to which the product satisfies the customer needs Ideally, there is one and only one metric for each need. In practice, this is frequently not possible.

13. Step 1. Prepare the List of Metrics A simple needs-metrics matrix represents the relationship between needs and metrics. The rows of the matrix correspond to the customer needs, and the columns of the matrix correspond to the metrics. This matrix is a key element of the House of Quality, a graphical technique used in Quality Function Deployment, or QFD

14. Guidelines of Metrics Metrics should be complete. Ideally each customer need would correspond to a single metric,and the value of that metric would correlate perfectly with satisfaction of that need. Metrics should include the popular criteria for comparisons in the marketplace. For example, popular science, customer reports or Bicycling and mountain Bike magazines.

15. Guidelines of Metrics Metrics should be dependent, not independent, variables. Variant of the what-not-how principle Specifications indicate what the product must do, but not how the specifications will be achieved. Designers use many types of variables in product development; some are dependent, such as the mass of the fork, and some are independent, such as the material used for the fork.

16. Use Dependent Metrics Example: Designers cannot control mass directly because it arises from other independent decisions the designers will make, such as, dimensions and materials choices. Metrics specify the overall performance of a product and should therefore be the dependent variables ( i.e., the performance measures or output variables)

17. Guideline of Metrics Metrics should be practical. Metrics will be directly observable or analyzable properties of the product that can be easily evaluated by the team. Some needs cannot easily be translated into quantifiable metrics. Team notes that the metric is subjective and would be evaluated by a panel of customers. ( “Subj.” )

18. List of Metrics for the Suspension

19. The Needs-Metrics Matrix

20. Competitive Benchmarking Chart Based on Metrics

22. Step2: Collect the Competitive Benchmarking Information Information on competing products must be gathered to support product positioning decisions. Warning: Sometimes the data contained in competitors’ catalogs and supporting literature are not accurate. If possible, verify by independent testing or observation.

23. Step3: Set Ideal and Marginally Acceptable Target Values for Each Metric Two types of target values are useful: an ideal value and a marginally acceptable value. The ideal value is the best result the team could hope for. The marginally acceptable value is the value of the metric that would just barely make the product commercially viable.

24. Five ways to express the values of the metrics At least X At most X Between X and Y Exactly X A set of discrete values

25. At least X Establish targets for the lower bound on a metric, but higher is still better.

26. At most X Establish targets for the upper bound on a metric, with smaller values being better.

27. Between X and Y Establish both upper and lower bounds for the value of a metric.

28. Exactly X Establish a target of a particular value of a metric, with any deviation degrading performance.

29. A set of discrete values Some metrics will have values corresponding to several discrete choices. For example, the headset diameters are 1.000, 1.125, or 1.250 inches.

30. Competitive Benchmarking Chart

31. Step 4: Reflect on the Results and the Process The team may require some iteration to agree on the targets. Are members of the team “gaming”? For example, is the key marketing representative insisting that an aggressive value is required for a particular metric in the hopes that by setting a high goal.

32. Step 4: reflect on the Results and the Process Should the team consider offering multiple products or at least multiple options for the product in order to best match the particular needs of more than one market segment, or will one “ average” product suffice? Are any specifications missing? Do the specifications reflect the characteristics that will dictate commercial success?

33. The target Specifications

34. Setting the Final Specifications As the team finalizes the choice of a concept and prepares for subsequent design and development, the specifications are revisited. Finalizing the specifications is difficult -  How to resolve trade-offs

35. Setting Final Specs: A Five- Step Process 1. Develop technical models of the product 2. Develop a cost model of the product 3. Refine the specifications, making trade-offs where necessary 4. Flow down the specifications as appropriate 5. Reflect on the results and the process

36. Step 1: Develop Technical Models of the Product A technical model of the product is a tool for predicting the values of the metrics for a particular set of design decisions. Models  both analytical and physical approximations of the product. When physical models must be constructed, it is often useful to use DOE techniques to minimize the number of experiments required to explore the design space

37. Step 2: Develop a Cost Model of the Product Goal: to make sure that the product can be produced at the target cost. For most products, the first estimates of manufacturing costs are completed by drafting a bill of materials (BOM) and estimating a purchase price or fabrication cost for each part.

38. A Bill of Materials with Cost Estimates

39. A Competitive Map

40. Step 3: Refine the Specifications, making Trade-Offs where necessary One important tool for supporting this decision-making process is the competitive map. This map is a scatter plot of the competitive products along two dimensions selected from the set of metrics. Generally the team will prepare three or four such maps corresponding to a handful of critical metrics.

41. The Final Specifications

42. Step 4: Flow Down the Specifications as Appropriate For highly complex product consisting of multiple subsystems: to ensure that the subsystem specifications in fact reflect the overall product specifications. to ensure that certain specifications for different subsystems are equally difficult to meet (e.g. mass of engine & engine body)

43. Step 5: Reflect on the Results and the Process Is the product a winner? How much uncertainty is there in the technical and cost models? Is the concept chosen by the team best suited to the target market, or could it be best applied in another market? Should the firm initiate a formal effort to develop better technical models of some aspect of the product’s performance for future use?

44. Appendix: Target Costing Text Book Page 104